Cross-Listing and Capital Investment DecisionsCross-Listing and Capital Investment Decisions
- Other Titles
- Cross-Listing and Capital Investment Decisions
- Authors
- 한승수; Don Herrmann; Tony Kang; Michael Wolfe
- Issue Date
- 2015
- Publisher
- 한국회계학회
- Keywords
- Cross-Listing; Investment Efficiency; Reputational Bonding
- Citation
- 회계학연구, v.40, no.2, pp.39 - 74
- Indexed
- KCI
- Journal Title
- 회계학연구
- Volume
- 40
- Number
- 2
- Start Page
- 39
- End Page
- 74
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/95301
- ISSN
- 1229-3288
- Abstract
- This study examines how cross-listing in the U.S. relates to the efficiency of capital investment decisions. We find that U.S. cross-listed firms exhibit greater investment efficiency than foreign firms not cross-listing in the U.S. We then explore whether this finding is related to the type of cross-listing (exchange vs. non-exchange) and the strength of the home country disclosure environment. We observe a stronger association between cross-listing and investment efficiency for exchange-listed ADRs, subject to U.S. disclosure and enforcement requirements, than for non-exchange listed ADRs. We further find that this association is largely concentrated in exchange-listed firms from weaker home country disclosure environments where the potential benefits of cross-listing in the U.S. are greater. Our findings provide new evidence regarding the possible internal benefits to cross-listing. For instance, we provide evidence that actual managerial decisions, specifically capital investment efficiency, are associated with cross-listing.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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